-434- .

"Mr. Cleveland A. Newton has just written me relative to the interview
that he, in company with Congressman Dewey Short, had with you recently,.
and has advised that the 'low York crowd insists we are making money hand.l
over fist. These New York fellows know our position, but as I previous-i
ly advised, it is my opinion, ba3ed on experience, that they do not care;
anything about our position in this industry. It is imy honest opinion
that they feel that the handbag manufacturing business is an eastern ii
business. I might be wrong in some of my conclusions regarding these
fellows in the east, but I don't think so."

 This is only an unsupported ex-pression of opinion.

"In a bulletin put out by the Code Authority dated I.arch 21, they list
91 cases pending for non-compliance with the Code. I wonder if you fel.-41
lows in Washington know the details of these non-compliance cases. Of
course, I do not, but it wouldn't surprise me if many of them were not
in the same class as that of the Virginia Art Studio of Lynchburg, Vir-l
ginia, who apparently have never complied with the minimum wage, and
this concern in Lynchburg is perfectly justified in my opinion is not
complying. It is reported I think. that the Virginia Art Studios are
doing a big business. They may be, but at this time of the year they
manufacture a particular type of bag that for.ns a big part of their
year's business, and if it looks like thej are doing a big business in
recent months it isn't because they are taking advantage of the lower
wages they are paying, but 9n account of the seasonal bags they are maJ-
ing. 1

 The 91 cases of non-comoliance pending cover all kinds of cases ofi
 non-compliance under the code. Surely, the IMLeeker Company does noW
 intend to justify their right to an exemption to the code for the if
 reason that others have not complied with code provisions. The i
 facts in the case of the Virginia Art Goods Studios are well knownii
 to the Administration. ITo exemption has ever been granted to the
 Virginia Art Goods Studios by the Code Authority of the Ladies'
 Handbag Industry.

"When the Code went into effect we asked for exceptions to the minimum
wage, filing our brief in due form and going before one of the Darrow
Committee in Kansas City, a i.r. IMIann, explaining our position and while
waiting for a decision we had in effect a minimum of 30W per hour for
for some of our help. Yet the Code Authority, when they got ready to |
issue labels, would not ship us labels until we had paid back about
$800. that they termed back wages to bring the minimum up to $14.00, or0'::
350 an hour. And now I find that the Virginia Art Studios have labels
on their product, yet have not been compelled by the Code Authority to
pay the Code minimum, and there may be others among the 91 non-compli-
ance cases operating as this concern is.

"All of this may not be of interest to you in the situation, yet I thi]k
it does show that we haven't been treated fair under the Code. I am
not complaining against the Lynchburg, Virginia concern; their position
is somewhat similar to ours, and they should not be made to come under
the Code on the same basis as the New York and that particular vicinity|
where nearly all of the manufacturers are located, with their market for|
raw material and everything that goes into handbags except labor, rightly |
at their door." ||.

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